‘Boiler room’ was run in Queenstown

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A foreign exchange trading scheme that the Financial Markets Authority has warned against was being sold out of Queenstown.

FMA believes claims by Phoenix Forex Ltd about high level returns for its Oak FX foreign exchange trading system – for an upfront fee of up to $25,700 – are untrue.

“Phoenix Forex has previously advertised returns of between 50 per cent to 65 per cent per annum,” FMA says.

‘Phoenix Forex’ and ‘OakFx’ are on Phoenix Group Ventures Ltd’s signboard for lavish first-floor offices in a building in Queenstown’s Church Street.

The sole director of the two Phoenix companies is Kendall Twigden. Her twice-bankrupted partner Mark Brewer is a self-described “sales legend” for Phoenix, The NZ Herald reports.

When Mountain Scene called on the Church St offices yesterday, manager “Rene” said Brewer and Twigden were in Auckland but he couldn’t give a phone number as “I don’t have it here”.

Rene offered an email address that didn’t work.

Asked about Oak FX, he said: “We’ve operated Oak FX here” – but couldn’t say when as he was only down to look after “magazine guys”.

Twigden told the NZ Herald last week she didn’t accept FMA allegations and answered any questions they had.

A source says 12 to 15 phone sellers flogged Oak FX from the offices earlier this year. It’s understood Twigden and Brewer maintain an apartment on the same floor.